When it comes to stock ownership, there are two main types: preferred stocks and common stocks. Common stocks allow investors to become owners of the company in which they have…
Triangular arbitrage in forex refers to the process of trading three different currencies to exploit discrepancies in their exchange rates.
Value at risk (VaR) is a measure of the potential loss on an investment over a specified time period, given a certain level of confidence.
Liquidity risk is the risk that a financial institution or other borrower will be unable to meet its financial obligations as they come due
The forward price-to-earnings ratio (forward P/E ratio) is a financial ratio that uses the expected earnings per share (EPS) for the next 12 months to calculate the valuation of a company.
Financial risk management is the practice of identifying, assessing, and mitigating potential financial risks.
Beta as used in finance, investing, and stock trading refers to the risk exposure of a specified financial asset in relation to the overall market, otherwise referred to as systematic risk.
Equity financing is when a company seeks external funding from investors through the issue of shares, normally in the form of common stocks.
The relationship between interest rates and inflation is inversely related, meaning that when one goes up the other goes down, and vice versa.
From the lender’s side, interest rate is the percentage compensation received from offering a loan service. From the borrower’s side, interest rate is the percentage cost paid to acquire a loan service.